Developed

Tres Palacios Gas Storage LLC, a subsidiary of Westport, CT-based NGS Investments LP, asked the Federal Energy Regulatory Commission for clearance to place its entire storage header system in Texas in service on Monday (July 20). “Action by that day will give Tres Palacios adequate time to alert its customers to the availability of additional receipt point capabilities for storage injections and will give those customers time to make the necessary upstream transportation and gas supply arrangements,” wrote attorneys for the storage company. Tres Palacios said it was nearing completion of the construction of the segment of the header system located between interconnections with Transcontinental Gas Pipe Line and Tennessee Gas Pipeline.The 41.72-mile, looped bidirectional pipeline will be connected to a number of interstate and intrastate pipelines. In late 2008 and early this year Tres Palacios received authorization to place into service storage caverns one and two, as well as its gas handling facility and previously constructed portions of the header pipeline system (see NGI, Oct. 6, 2008). The storage facility, located in Matagorda County, TX, is using existing underground salt caverns on the Markham Dome. A third cavern is targeted for service in 2010, according to Tres Palacios. The three-cavern facility has planned working gas storage capacity of 36.62 Bcf, and will have the ability to receive injections of up to 1 Bcf/d and handle withdrawals of up to 2.5 Bcf/d.

British Columbia (BC), First Nations and the natural gas industry have struck an agreement to allow First Nations participation in a gas pipeline being developed to serve a proposed liquefied natural gas (LNG) liquefaction and export terminal near Kitimat, BC.

British Columbia (BC), First Nations and the natural gas industry have struck an agreement to allow First Nations participation in a gas pipeline being developed to serve a proposed liquefied natural gas (LNG) liquefaction and export terminal near Kitimat, BC.

Southwestern Energy Co. used its muscle in the Fayetteville Shale to boost its natural gas-weighted output by 65% in the last three months of 2008 from a year earlier, the company reported late Thursday.

Southwestern Energy Co. used its muscle in the Fayetteville Shale to boost its natural gas-weighted output by 65% in the last three months of 2008 from a year earlier, the company reported late Thursday.

No new natural gas-fired generation had been built in the Pacific Northwest for four years when the Port Westward plant was developed northwest of Portland, OR, the head of the Oregon Energy Department, Michael Grainey, told an energy conference in Seattle Thursday. He noted that increased reliance on intermittent wind resources needs more gas (or considerably more wind) to “shape” future power loads to keep them in balance.

No new natural gas-fired generation had been built in the Pacific Northwest for four years when the Port Westward plant was developed northwest of Portland, OR, the head of the Oregon Energy Department, Michael Grainey, told an energy conference in Seattle Thursday. He noted that increased reliance on intermittent wind resources needs more gas (or considerably more wind) to “shape” future power loads to keep them in balance.

Commercial finance provider CIT Group Inc. has arranged $125 million in senior secured financings for Arcadia Gas Storage, a salt dome gas storage facility to be developed in north-central Louisiana (see Daily GPI, Jan. 25, 2007). Arcadia is owned by Cardinal Gas Storage, a 50/50 joint venture of Martin Resource Management Corp. and Energy Capital Partners. The facility is to be constructed in two phases over the next three years and will have 7.8 Bcf of working capacity. Financing for the transaction was provided by CIT Energy, a unit of CIT. The senior secured credit facilities included construction, pad gas and accordion financing.

Operators in emerging shale gas plays can expect to experience high costs as the plays are developed because drilling and completion is akin to research and development. However, costs fall as operators build their land positions in a particular play and develop drilling programs with the right type of rigs and completion services, according to Houston-based Ziff Energy Group.